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Owner of Longmont's Twin Peaks Mall 'more than stressed' over lack of progress with two key tenants

Council asked to use eminent domain as a 'last resort' action so project doesn't completely implode

By Tony KindelspireLongmont Times-Call

Posted:
01/29/2013 10:35:26 PM MST

Updated:
01/30/2013 01:37:26 PM MST

Customers in line at the United Artists theater in Longmont in November. (Greg Lindstrom/Times-Call file)

LONGMONT -- Despite more than a year's worth of negotiations, NewMark Merrill Mountain States has failed to come to terms with Dillard's and Regal Cinemas on an agreement on the redevelopment of Twin Peaks Mall.

Allen Ginsborg, managing partner for the mall's owner, NewMark Merrill Mountain States, appeared for a scheduled update on the progress of the mall's redevelopment and expressed his frustration from being able to move forward on what is a very ambitious timeline.

"Dillard's and Regal continue to obstruct and implement our immediate progress," Ginsborg told the city council, which has already given its approval to move forward on being a financial partner in the mall's redevelopment. "A number of other tenants have agreements that say 'You have to have the ability to build our store.'"

Twin Peaks Mall's owners, NewMark Merrill Mountain States, have grown frustrated by not being able to come to leasing agreements with Dillard's and Regal Cinemas. (Lewis Geyer/Times-Call file)

Ginsborg asked the council, acting as the Longmont Urban Renewal Authority, to pass a resolution that would give it the option of using eminent domain as a last resort if every other effort to strike agreements with those two tenants fail, so as not to jeopardize the total $80 million project.

In the case of Dillard's, it owns its own store and the land it sits on, and covenants dating back to 1997 give it veto power over any redevelopment of the mall property. Multiple discussions on and off for more than a year have failed to produce any kind of agreement, Ginsborg said. He said he has expressed his company's wishes to have Dillard's stay, but it has gone back and forth on its commitments and its demands. In meetings as recently as the past few days Dillard's appears to want to keep operating its store in Longmont, he said.

As for the movie theater, it has a "lease hold" that allows it to be the only cinema operator on the property. It has already signed a letter of intent to be the operator on a new project, and a deadline of this Friday to submit a draft lease agreement to NewMark Merrill. A deadline of March 15 stands for a final lease to be signed between the developer and Regal.

Not even a letter of intent exists with Dillard's, Ginsborg said.

After more than a year of negotiations Twin Peaks Mall's owners still have not been able to land a firm agreement from Dillard's on redevelopment of the property. (Greg Lindstrom/Times-Call file)

City Council voted unanimously to have city staff bring back the language for an eminent domain resolution it will look at at its next meeting, Feb. 5. While it would not take action next week -- acting as LURA -- it will leave itself open to that option if the March 15 deadline is not met.

As for Dillard's, city manager Harold Dominguez said he would notify the company about the action Tuesday night and would once again stress the importance of meeting a deadline of mid-March.

Ginsborg told council that given the timeline his company is under, he must have all of the financing in place for his project by April 1.

During a 21/2-hour council discussion, there was feeling on one side that a formal action that even threatened the use of eminent domain would negatively impact negotiations between the mall's owner and Dillard's and Regal. But the other side felt that, after more than a year of negotiations with both of them, it might help those tenants get a little more serious about striking a deal.

Describing himself as "more than stressed" with the April 1 deadline just more than two months away, Ginsborg said, "The reality is I didn't want to come to you and ask you for this until I felt I needed it."

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